Klaus From Germany, joined Jul 2001, 21592 posts, RR: 53
Reply 2, posted (5 years 1 month 2 days 11 hours ago) and read 1903 times:
If the rating agencies hadn't demonstrated their complete and utter incompetence as a major contributing cause of the financial crisis, this could be called a plausible step.
As things stand, among many other things to be cleaned up, the current rating agencies need to be totally revamped or completely replaced outright. They are in much, much worse shape themselves than either Spain or even Greece.
DocLightning From United States of America, joined Nov 2005, 21805 posts, RR: 63
Reply 3, posted (5 years 1 month 1 day 20 hours ago) and read 1716 times:
This is an interesting test for the Euro. Spain is the 4th largest economy and, until recently, was the fastest growing in Europe.
In most countries, an event like this would drive the value of the currency up a bit. Nobody has any money to spend, so everything gets cheaper. With the Euro, that effect is much smaller. But while the Euro holds steady, other things in Spain get very cheap, like labor and land. A building boom in the costal towns could be the correcting factor, but that alone isn't going to employ 15% of Spaniards so as to get unemployment down to a reasonable level again.